Stock Market Synopsis — November 20, 2012

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Looking at the chart on the Dow, we see the exact same price drop & recovery pattern that took place at the end of the springtime market correction this past May. At that time, the market average reached highs not seen since May ’08, had a pullback, then one last spike downward before beginning the next leg up.

From there, the Dow continued climbing, again reaching highs not seen since Dec. ’07/Jan. ’08. Then a pullback in late October followed by a final price drop after the November election.

What I anticipate from here, barring unforeseen market interruptions, is that the Dow will return to 13,200-13,300 relatively quickly, then bounce a couple times around 12,900. (I expect that the S&P 500 index would follow a similar trading pattern, which is why I don’t mention both averages in every sentence.)

Another key indicator for me that this post-election drop is part of a normal correction, and not a market breakdown, is that only 1-2 of the stocks I follow and recommend have recently fallen through support levels. To me, that shows a lot of market strength.

Take action: Now is the time to continue accumulating good growth stocks which you’d like to own during the next stock market run-up. And listen up: the last week in December is almost always a very good week in the market. So if you think you’re going to do some pruning and sowing in your portfolio, don’t wait until early January to “get a good start on the year”. Subscribe now to find excellent stock ideas! You will want everything in place by about December 20.

Happy investing!

Crista Huff

Goodfellow LLC

research@goodfellowllc.com

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